US TREATY OF AMITY COMPANY REGISTRATION
There are not many breaks for the foreign SME business owner in Thailand. One major hurdle is that foreigners are barred from owning a majority stake in a Thai limited company. A notable exception is the US-Thai Amity Treaty company registration. Under this special treaty Americans and American corporations are afforded the same rights as a Thai national including 100% Foreign company ownership rights.
Amity Treaty Requirements
To register an amity company in Thailand you must meet the following criteria:
A majority of the company’s must be American citizens, or a company registered in the USA that has a majority of its shares held by US citizens.
A majority of authorized company directors must be either Thai or American citizens. Other nationalities may act as director at a ratio of 2:1.
Own 100% of a company under the US Treaty of Amity
The Treaty of Amity and Economic Relations between the United States of America and the Kingdom of Thailand permits American companies to maintain a majority shareholding or to wholly own its company, branch office or representative office located in Thailand. This ability to have all-American shareholders is of great consolation to those who feel uneasy about offering controlling ownership of their company to others may not completely understand the business and/or be fully aligned with its values. On the other hand, many U.S. businesses happily pursue joint ventures with Thai partners and permit them to hold a majority stake in the company, in recognition of their greater familiarity with Thai business culture and the local regulatory framework. Another feature of the Treaty is that American companies are treated similar to Thai companies in many regards, and are exempt from most of the restrictions on foreign investment imposed by the Alien Business Act.
Amity Company Restrictions
Do be aware, though, that the following restrictions still apply to companies formed under the auspices of the Treaty:
Owning land
Engaging in the business of inland communication
Engaging in inland transportation and communication industries
Engaging in fiduciary functions
Engaging in banking involving depository functions
Engaging in domestic trade in indigenous agricultural products
Exploiting land or other natural resources
Amity Company Registration Process
The process by which American citizens may utilise the US-Thai Treaty of Amity can be confusing to those who are unfamiliar with the relevant steps, rules and procedures. Interactive has experienced staff on hand to help you every step of the way. We ensure that the process of creating your Amity company is completed correctly, smoothly and quickly – thus avoiding any unnecessary cost or delay.
